After a bumpy couple of years following the COVID pandemic, Islamic finance appears to be growing robustly in many parts of Southeast Asia and experts say there is still plenty of room for expansion. (Nikkei montage/Source photos by AP and Reuters)

Islamic finance expands beyond Malaysia in Southeast Asia

Indonesia, the Philippines and Thailand push to capture growing demand

NORMAN GOH

March 4, 2025 06:00 JST

KUALA LUMPUR -- Islamic finance is expanding across Southeast Asia, attracting new players and products as institutions seek to tap what is still a relatively small sector in most countries.

The region accounted for some $859 billion, or 17% of the $4.9 trillion global market in 2023 after growing by 11% in 2022, according to the latest study by the Islamic Corporation for the Development of the Private Sector (ICD) and London Stock Exchange Group (LSEG). This compared to $730 billion, or 20%, of $3.49 trillion in 2020.